Huiyin Household Appliances (Holdings) Co., Ltd. announced that based on the preliminary assessment of the unaudited consolidated management accounts of the Group, the net profit of the Group for the six months ending June 30, 2012 is expected to be significantly lower than that of the corresponding period in 2011. The company believes that the significant decrease in the net profit of the Group is mainly due to the macro policy and the increasing cost pressure in the home appliance industry in China and may further be adversely affected by provisions made by the Group, if any, in respect of the amounts due from suppliers after taking into account of increased operation pressure in the upstream industry during the first half of 2012.